Govt to review petroleum prices on daily basis, says minister

The government has decided to review fuel prices on a daily basis amid skyrocketing oil prices in the global market, said Petroleum Minister Ali Pervaiz Malik on Friday.

Addressing a press conference alongside Information Minister Attaullah Tarar, Malik said the renewed tensions in the Middle East, which have fuelled concerns over the stability of global energy supplies, were regrettable.

He said the government has decided to hand the Oil and Gas Regulatory Authority (OGRA) the responsibility of determining petroleum prices on a daily basis based on international market trends, as part of broader reforms aimed at enhancing transparency and deregulating the pricing mechanism.

Malik said the move follows a cabinet decision under which OGRA will not only notify fuel prices but also disclose the underlying calculations and market factors behind the rates charged at petrol pumps.

“OGRA will publish not only the fuel prices but also the factors used to determine them, allowing consumers to understand how prices are set,” he said.

The minister acknowledged that the new pricing mechanism could at times place an additional burden on consumers but argued that greater transparency would help the public understand why price adjustments become necessary.

He said the government remained committed to Prime Minister Shehbaz Sharif’s pledge that any relief arising from lower international oil prices would be passed on to the public.

Malik noted that Pakistan had previously witnessed substantial reductions in fuel prices when global oil prices fell, citing diesel prices dropping from around Rs520 per litre to nearly Rs300, while petrol prices had also declined by Rs70-80 per litre during periods of lower international prices.

Addressing concerns over fuel taxation, he said petroleum levy and carbon support levy rates on petrol and diesel remained relatively low, adding that the government was working to improve transparency and gradually reduce the burden of indirect taxation.

Under the new mechanism, daily fuel prices will be determined using a rolling seven-day average of international petroleum prices, he said, adding that the system is designed to automatically reflect global market movements without requiring ministerial approval.

“This is another step towards deregulation so that prices are adjusted in line with international markets without intervention from me, the information minister or anyone else,” Malik said.

The minister said a committee constituted by the prime minister under his chairmanship had already held four meetings to review the petroleum pricing framework.

He added that within the next 15 to 20 days, the government would finalise a post-war energy pricing and energy security architecture, which he described as a long-term reform framework for Pakistan’s energy sector.

Malik also questioned Pakistan’s continued dependence on imported energy and stressed the need to strengthen domestic energy security.